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HomeMy WebLinkAboutCRA-R-25-0073Southeast Overtown/Park West Community Redevelopment Agency Legislation CRA Resolution: CRA-R-25-0073 819 NW 2d Ave 3rd Floor Miami, FL 33136 www.seopwcra.com File Number: 18532 Final Action Date:11/20/2025 A RESOLUTION OF THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY ("SEOPW CRA"), WITH ATTACHMENT(S), BY A FOUR -FIFTHS (4/STHS) AFFIRMATIVE VOTE, AFTER AN ADVERTISED PUBLIC HEARING, RATIFYING, APPROVING, AND CONFIRMING THE EXECUTIVE DIRECTOR'S RECOMMENDATION AND FINDING, ATTACHED AND INCORPORATED HEREIN AS EXHIBIT "A," THAT COMPETITIVE NEGOTIATION METHODS AND PROCEDURES ARE NOT PRACTICABLE OR ADVANTAGEOUS, PURSUANT TO SECTION(S) 18-85 AND 18-86 OF THE CODE OF THE CITY OF MIAMI, FLORIDA ("CITY"), AS AMENDED, AS ADOPTED BY THE SEOPW CRA, AND WAIVING SAID PROCEDURES, AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE A DEVELOPMENT ECONOMIC INCENTIVE AGREEMENT ("AGREEMENT"), IN SUBSTANTIALLY THE FORM ATTACHED AS EXHIBIT "B," PROVIDING FOR AN INCENTIVE PAYMENT, PURSUANT TO CITY RESOLUTION R-24-0109, A GRANT OF AN AMOUNT NOT TO EXCEED $10,000,000.00 ("FUNDS") FOR PROJECT COSTS, AND AN ANNUAL AFFORDABLE HOUSING OPERATING SUBSIDY OF AN AMOUNT NOT TO EXCEED $750,000.00 TO BLOCK 45, LLC, A FLORIDA LIMITED LIABILITY COMPANY ("DEVELOPER"), FOR THE MIXED -USE TRANSIT -ORIENTED DEVELOPMENT PROJECT AT 152 NORTHWEST 8TH STREET, MIAMI, FLORIDA 33136 (FOLIO NO. 01-0104-050-1010) ("PROPERTY") ("PURPOSE"); FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO ALLOCATE THE FUNDS FROM ACCOUNT NO. 300000.920101.883000.0000.00000 — "SEOPW CAPITAL PROJECTS GRANT AND AIDS," SUBJECT TO ALL FEDERAL, STATE AND LOCAL LAWS THAT REGULATE THE USE OF SUCH FUNDS FOR SAID PURPOSE; FURTHER AUTHORIZING THE EXECUTIVE DIRECTOR TO NEGOTIATE AND EXECUTE ANY AND ALL DOCUMENTS NECESSARY, ALL IN FORMS ACCEPTABLE TO COUNSEL, INCLUDING, BUT NOT LIMITED TO, A RESTRICTIVE COVENANT TO BE RECORDED IN THE PUBLIC RECORDS OF MIAMI-DADE COUNTY, FLORIDA, FOR SAID PURPOSE, AND DIRECTING THE EXECUTIVE DIRECTOR TO PRESENT ANY AMENDMENTS TO THE BOARD FOR ITS CONSIDERATION AND, IF SATISFACTORY, APPROVAL; PROVIDING FOR THE INCORPORATION OF RECITALS AND AN EFFECTIVE DATE. WHEREAS, the Southeast Overtown/Park West Community Redevelopment Agency ("SEOPW CRA") is a community redevelopment agency created pursuant to Chapter 163, Florida Statutes, and is responsible for carrying out community redevelopment activities and projects within its Redevelopment Area in accordance with the 2018 Updated Southeast Overtown/Park West Community Redevelopment Plan (the "Plan"); and WHEREAS, pursuant to Section 163.340(9), Florida Statutes, "community redevelopment" means "projects of a ... community redevelopment agency in a community redevelopment area for the elimination and prevention of the development or spread of slum and blight"; and City of Miami Page 1 of 5 File ID: 18532 (Revision:) Printed On: 12/1/2025 File ID: 18532 Enactment Number: CRA-R-25-0073 WHEREAS, affordable housing, and the lack thereof, is a significant issue in the City of Miami ("City") and within the Redevelopment Area, specifically; and WHEREAS, Section 2, Goal 2, of the Plan, upholds "expand[ing] the tax base using public - private principles" and "creat[ing] viable commercial corridors ... through Public -Private Partnerships," as a stated redevelopment goal; and WHEREAS, Section 2, Goal 3, of the Plan, emphasizes "working with the [public] and the private sector to encourage and create a sound balance of ... affordable ... housing within the [SEOPW] CRA," as a stated redevelopment goal; and WHEREAS, Section 2, Goal 6, of the Plan, supports "improv[ing] the quality of life [and] creating housing ...," as a stated redevelopment goal; and WHEREAS, Section 2, Principle 2, of the Plan, proposes that the "neighborhood ... retain access to affordable housing," as a stated redevelopment principle; and WHEREAS, Section 2, Principle 3, of the Plan, discusses that there "must be variety in [affordable] housing options," as a stated redevelopment principle; and WHEREAS, the Block 45 (Atlantic Square) development project is a large-scale, mixed -use development, which is anticipated to include a retail center, containing approximately 24,000 net square feet of commercial/retail space on the Property and approximately 616 residential units (the "Project"); and WHEREAS, Block 45, LLC, a Florida Limited Liability Company (the "Developer") anticipates that the Project will create substantial job opportunities within the Redevelopment Area; and WHEREAS, Atlantic Pacific Communities, LLC, a Foreign Limited Liability Company, authorized to do business in the State of Florida, and Miami -Dade County, Florida, a political subdivision of the State of Florida (the "County"), are parties to the Project at 152 Northwest 8tn Street, Miami, Florida, 33136 (Folio No. 01-0104-050-1010), as well as Lease Agreement No. RFP-00700, dated July 15, 2019 (the "County Lease"), with respect to that certain real property (the "Property"); and WHEREAS, Atlantic Pacific Communities, LLC, assigned all of its right, title and interest in the County Lease, with respect to the Property, to Developer; and WHEREAS, in accordance with the terms and provisions of the County Lease, Developer commenced construction on the Project, in accordance with the "Construction Plans," as defined in the County Lease; and WHEREAS, the SEOPW CRA and Developer are currently negotiating a development economic incentive agreement; and WHEREAS, terms have been negotiated, as more particularly described in the proposed Development Economic Incentive Agreement ("Agreement"), in substantially the form attached as Exhibit "B"; and WHEREAS, the SEOPW CRA has agreed to provide certain economic incentives to Developer in exchange for Developer's agreement to (i) set aside forty (40) affordable housing units and (ii) lease to the SEOPW CRA approximately 4,000 square feet of the commercial/retail space at the Project; and City of Miami Page 2 of 5 File ID: 18532 (Revision:) Printed on: 12/1/2025 File ID: 18532 Enactment Number: CRA-R-25-0073 WHEREAS, the Agreement, in substantially the form attached as Exhibit `B," provides for the SEOPW CRA's incentive payment to the Developer equal to (i) seventy-five percent (75%) of the tax increment revenues (excluding the land value) generated from the Project actually received by the SEOPW CRA from the City and County (the "Incremental TIF Payment"), and (ii) one hundred percent (100%) of the City's Section 5(e) Payment ("Section 5(e) Payment"), as defined in Section 5.2 of Exhibit "B" ("Incentive Payment"); and WHEREAS, in accordance with City Resolution R-24-0109, the Developer has agreed, in exchange for the Section 5(e) Payment, to provide twelve (12) units to be made available solely for individuals and/or families (i.e. Low -Income Tenants) earning up to sixty percent (60%) Area Median Income, as published annually by the United States Department of Housing and Urban Development ("AMI"), throughout the term period (set to expire at the earlier of March 31, 2042 or the sunset of the SEOPW CRA); and WHEREAS, in addition, Developer has further agreed, in exchange for the Incremental TIF Payment, to make available (i) twenty-eight (28) units for individuals and/or families (i.e. Middle Low - Income Tenants) earning up to eighty percent (80%) of AMI and (ii) 4,000 square feet of commercial/retail space at the Project, throughout the above defined term period; and WHEREAS, the Agreement, in substantially the form attached as Exhibit `B," further provides for the SEOPW CRA's annual payment to Developer of Seven Hundred Fifty Thousand Dollars and Zero Cents ($750,000.00) (set to expire at the earlier of March 31, 2042) ("Housing Subsidy"), as defined in Section 5.4 of Exhibit `B," for an affordable housing operating subsidy applied to those twenty-eight (28) of the forty (40) units (i.e., Middle Low Affordable Units) provided, first occupied by individuals and/or families earning up to eighty percent (80%) of AMI; and WHEREAS, the Agreement, in substantially the form attached as Exhibit `B," further provides for a payment to Developer for project construction costs, in an amount not to exceed Ten Million Dollars and Zero Cents ($10,000,000.00), to be funded by a portion of the proceeds from the issuance of the 2025 Series Bonds' as consideration for its services, setting aside twenty-eight (28) affordable residential units, and for related capital improvements and costs associated with the Project ("Purpose"); and WHEREAS, a Restrictive Covenant, shall be recorded on the Property, and any other land transferred in furtherance of the development project stated, in the event Developer fails to be in compliance with the terms and conditions of the Agreement, in substantially the form attached as Exhibit "B," and as described herein; and WHEREAS, the Board of Commissioners ("Board") wishes to accept the negotiations and authorize the Executive Director to execute the Agreement, in substantially the form attached as Exhibit "B," with the Developer, for the Purpose stated herein; and WHEREAS, the Board further wishes to authorize the allocation and appropriation of a portion of the 2025 Series Bond proceeds, in an amount not to exceed $10,000,000.00 ("Funds"), for said Purpose; and WHEREAS, the Board further wishes to authorize the allocation and appropriation of funds, in an amount not to exceed $750,000.00 ("Housing Subsidy"), annually, subject to the terms and conditions of the Agreement, in substantially the form attached as Exhibit `B," and the Restrictive Covenant, to be recorded in the public records of the County, for said Purpose; and 1 On April 10, 2025, the Board, through CRA-R-25-0014, and the City of Miami, through R-25-0135 approved the issuance of the SEOPW CRA's Tax Increment Revenue Bonds, Series 2025. City of Miami Page 3 of 5 File ID: 18532 (Revision:) Printed on: 12/1/2025 File ID: 18532 Enactment Number: CRA-R-25-0073 WHEREAS, the Board finds that authorizing this Resolution would further the SEOPW CRA's redevelopment goals and objectives; and WHEREAS, based on the recommendation and findings of the Executive Director, attached and incorporated herein as Exhibit "A," it is in the SEOPW CRA's best interest for the Board to authorize, by an affirmative four -fifths (4/5ths) vote, a waiver of competitive sealed bidding procedures, pursuant to Section(s) 18-85 and 18-86 of the Code of the City of Miami, Florida, as amended ("City Code"), as adopted by the SEOPW CRA, the granting of the Funds to Developer for the Purpose stated herein, and the negotiation and execution of any and all agreements necessary, all in forms acceptable to Counsel, for said Purpose; NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE SOUTHEAST OVERTOWN/PARK WEST COMMUNITY REDEVELOPMENT AGENCY: Section 1. The recitals and findings contained in the Preamble to this Resolution are adopted by reference and incorporated herein as if fully set forth in this Section. Section 2. Pursuant to Section(s) 18-85 and 18-86 of the City Code, as adopted by the SEOPW CRA, by a four -fifths (4/5th) affirmative vote, after an advertised public hearing, the Executive Director's recommendation and written findings, attached and incorporated herein as Exhibit "A," that competitive negotiation methods and procedures are not practicable or advantageous to the SEOPW CRA, and waiving the requirements for said procedures, are hereby ratified, approved, and confirmed. Section 3. The Board hereby approves and authorizes the acceptance of negotiations for the redevelopment of the Property for the Purpose stated herein. Section 4. The Executive Director is hereby authorized to execute the Agreement, in substantially the form attached as Exhibit `B," by and between the SEOPW CRA and Developer, for the Purpose stated herein. Section 5. The Executive Director is hereby further authorized2 to negotiate and execute any agreements, including any and all documents necessary, all in forms acceptable to Counsel, including, but not limited to, a Restrictive Covenant to be recorded in the public records of the County, for said Purpose. Section 6. The Executive Director is hereby further authorized to allocate and appropriate a portion of proceeds from the Series 2025 Bond Issuance as a grant, in an amount not to exceed $10,000,000.00, from Account No. 300000.920101.883000.0000.00000 — "SEOPW Capital Projects Grant and Aids," to Developer to fund project costs, for said Purpose. Section 7. The Executive Director is hereby further authorized to allocate and appropriate funds, in an amount not to exceed $750,000.00 ("Housing Subsidy"), from Account No. 10050.92010.883000.0000.00000 — "SEOPW Other Grant and Aids," annually, subject to the terms and conditions of the Agreement, in substantially the form attached as Exhibit `B," and the Restrictive Covenant, to be recorded, for said Purpose. Section 8. The Executive Director is hereby further authorized to negotiate amendments and clarifications to the Agreement, in substantially the form attached as Exhibit `B," with Developer, and is 2 The herein authorization is further subject to compliance with all legal requirements that may be imposed, including but not limited to those prescribed by applicable State law, City Charter and City Code provisions, as adopted by the SEOPW CRA. City of Miami Page 4 of 5 File ID: 18532 (Revision:) Printed on: 12/1/2025 File ID: 18532 Enactment Number: CRA-R-25-0073 directed to present any amendment(s) or clarification(s) to the Board for its consideration, and, if satisfactory, approval. Section 9. Sections of this Resolution may be renumbered or re -lettered and corrections of typographical errors which do not affect the intent may be authorized by the Executive Director, or the Executive Director's designee, without need of public hearing, by filing a corrected copy of the same with the City Clerk. Section 10. This Resolution shall become effective immediately upon its adoption. APPROVED AS TO FORM AND LEGAL SUFFICIENCY: ounsel 11/13/2025 City of Miami Page 5 of 5 File ID: 18532 (Revision:) Printed on: 12/1/2025